Property insurance can indicate different types of insurance policies, such as homeowners insurance, commercial property coverage, personal property, or contents, or even flood insurance. Having property insurance benefits owners and renters of both residential and commercial properties when unexpected costs arise from a covered loss,  The goal of insurance is to put property owners back to their original state before the loss occurred.  

Comaltex Insurance Agency of New Braunfels, TX, wants everyone to know a few things to look for in your property insurance policies. Here are three things to consider when purchasing property insurance to protect your assets and give you significant peace of mind:

• Be sure you have Replacement Cost Coverage on your personal belongings.  If your property is damaged by a covered peril, replacement cost coverage will pay to repair or replace your property. The reimbursement cost for personal property, or contents, coverage is based on what it costs to buy the item new.  Depreciation is still taken in most cases, but the insurance carrier reimburses you when the item is repaired or replaced.  Most insurance policies include a clause that indicates if the item is not repaired or replaced, the replacement value is not owed.  Note that not all property insurance policies include replacement value.  Some need an additional endorsement to add this coverage.  Be sure and ask your trusted insurance advisor about this type of endorsement.
• Actual Cash Value Coverage might be an option for you:  It will help protect your investment in the building by providing an amount of insurance based on its depreciated value. The insurance will pay for the depreciated value of the damaged property, which may be less than the cost of replacing or repairing the property with new materials.  In older buildings, clients sometimes choose to insure a building or structure for Actual Cash Value (ACV) because to insure for the replacement cost value is too expensive.  Many insurance carriers have options to insure part of the building for replacement and parts, like an old roof, for ACV.  This helps the property owner keep the costs down, yet still have excellent coverage.  
• Will coinsurance apply?  Almost all insurance policies, both personal and commercial, contain what is called a coinsurance provision.  Coinsurance is essentially an agreement between the property owner and the insurance company.  In exchange for agreeing to insure the property for at least a specified percentage of its actual value, the company agrees to issue the policy for a lower premium than it would charge for a policy without a coinsurance provision.  After a loss – even a small loss – if the amount of insurance on your property isn’t sufficient to satisfy your part of the agreement, then the insurance company can reduce the amount it would normally pay.

Property insurance will protect your assets in a variety of different scenarios, but it’s important to work with a trusted insurance advisor to find the best fit.  Property insurance is so much more than a piece of paper!  To find a coverage plan that best suits your situation, contact Comaltex Insurance Agency to compare premiums and the different policies available. Call them at (830) 625-7511 or visit their website to find out more information.